May 2006
www.mtdmfederation.ca

Precisely Canadian is produced by the Canadian Machine, Tool, Die & Mould Federation, a Cooperative Initiative of CAMM, CTMA, CPMA and the Mould Makers Council of CPIA.

The Goal of the Federation is to Address as a Unified Force the Issues Common to Each Member Association.

Table of Contents

  1. Never Was There a Better Time to be Seen in Many Ways
  2. Don’t Forget to Reserve Time for Your September Conference
  3. Remember to Check Out New TPE/Rubber Pavilion at NPE
  4. Here’s Federation Logo for You to Use
  5. End to Mandatory Retirement and Its Effect on Pensions
  6. D-M-E Opens New Distribution Center/ Same Day Delivery for Windsor
  7. Diverse Meetings Show Federation Members Well Served
  8. Advances in CAM Offer Vital Minutes for Savings and More
  9. Plastimagen Substantiates Renewed Vigor in Mexican Industry
  10. Schedule Much Time to Scrutinize Milacron's NPE Booth
  11. New EDC Program Manages Credit Downgrades in Auto Sector
  12. FITT Program Gives You International Marketing Expertise
  13. European Initiative Will Strengthen Status of Players
  14. AIAG Supports China Automotive Supply Chain with Shanghai Office
  15. Impressive Technology Advances Seen at Composites Show
  16. Industry Events for the Tool and Mould Maker
  17. Precisely Canadian Checks in on Status of Thixomoulding
  18. Faster Response to Customers’ Needs Leads to Success
  19. Engel Displays Cutting-Edge Technology at NPE
  20. Visit Progressive Components’ NPE Booth for Upbeat Experience
  21. More News Bits and Pieces For CMTDMF’s Readers
  22. Moving into China Markets Requires Very Thorough Strategy
  23. Auto Growth Means Choosing Wisely Wherever Business Sought
  24. Maintenance Insights and Answers for Tool Makers
  25. So How is the Canadian Auto Industry Faring in the World?
  26. Letter to Attorney General for You to Use On Lien Law
  27. NPE Offers Many Free Seminars That Fit Your Needs

Never Was There a Better Time to be Seen in Many Ways

ED BERNARD
Chairman, CMTDMF (president, Bernard Mould Ltd.)

The Novi (Michigan) Mold Expo just outside of Detroit had excellent conference subjects and I saw a good number of attendees, but what I didn’t see was individual mould manufacturers ‘expo’-ing themselves. The Canadian Association of Mould Makers was there, the American Mold Builders Association was there, and so was China Custom Manufacturing, but I only noticed one mould shop exhibiting.

I did see some of my customers walking the aisles so the show seems to have been an opportunity missed by absent mould shops.

In speaking with my suppliers and peers, I’m hearing the sentiment that things have never been worse. Collection difficulties, PPAP nonsense, cashflow, the exchange rate, legal costs, SR&ED ITC claim reductions, skiddish bankers, undervalued mould prices, automaker stocks dropping dramatically, Chinese moulds, low margins, and so on and so on, are on everyone’s mind.

Even the unbelievable has happened. Customers such as General Motors have become viewed as ‘risky!’ If so, what can we take security in? What can we count on?

Working together and communicating has never been more important, yet we allow petty issues to keep us apart.

Attending association meetings is a good start to bringing us together.

Our friends in government really do want to help us. And, now is the time to lobby.

(Business) tools such a provincial lien law are attainable, if we follow through with letter writing and applying pressure as a concerted effort. Victory in each of these battles leads towards our winning the ‘war.’ Complacency will end in ruin.

  • A draft copy of a letter to the Attorney General of Ontario regarding a lien law is available in this issue so that all you need to do is add your letterhead and sign it before sending it off. Every letter will help.

With regards to ‘getting to know you,’ the Federation now has the results from its MTDM industry survey, which provides genuine and accurate insights. The results will provide us with official industry positions on all of those issues of concern to us so we will be able to present more than just individual opinions.

This collective force will contribute to the creation of an Ontario mould manufacturers’ lien law that works to our benefit.

Make the decision then to make the effort and get involved with your industry associations and let’s make a difference, together.

Finally, your letters and opinions are welcome and when signed, can be considered for publishing. (We’ve also received commentary from members not for publishing and that too is welcome.)

(Please read and use the letter to Attorney General further down in this issue re lien legislation.)

ed@bernardmould.com (CMTDMF)

Don’t Forget to Reserve Time for Your September Conference

You are invited to participate in the Canadian Machine, Tool, Die and Mould Federation’s (CMTDMF) annual conference which is appropriately called 'Our Canadian Edge: Knowledge and Change.'

The conference runs from Sept. 15 through to the 17thand takes place in the Renaissance Hotel Fallsview, Niagara Falls, Ontario.

  • Be sure to let your service and supplier companies know sponsorships are available. Just contact your local association for all the details.

Remember to Check Out New TPE/Rubber Pavilion at NPE

The first TPE/Rubber Pavilion for an NPE covers 6,500 sq ft of space for 26 exhibitors. The pavilion was organized by the Rubber Manufacturers Association.

Both thermoset rubber and thermoplastic elastomer (TPE) technologies are represented among the exhibitors, which include material and equipment suppliers, processors, and industry associations.

In addition, one exhibit in the pavilion will be a display of products entered in a new TPE Product Design & Development Awards competition, with the winners to be announced on the last day of the show.

Free seminars covering elastomer technologies include: TPEs for dummies; market perspectives on TPEs and intermarket competition; case study; and technical perspective on TPEs and thermoset rubber, the paradigm shift.

Here’s Federation Logo for You to Use

When the founding association members, CAMM, CPMA, CTMA and the Mould Makers Council of CPIA established the CMTDMF, their goal was to advance the awareness, competitiveness, profile, and prosperity of their tooling and mould making industry.

The content of Precisely Canadian has been designed to help achieve those goals and now there’s a logo that symbolizes that mission. The logo also gives your customers and government a strong visual as to the unity of that mission. You can help by using the logo as well in your communications.

The first official use of the logo will be on materials for the September 15th-17th Annual Conference of the Federation in Niagara Falls, Ontario.

  • Just contact your respective association to get a copy of the logo. (Logo design by Bailey Design of Toronto , www.baileydesign.ca.)
  • In addition to using the logo to promote the merits of the Canadian tool, die and mould industry, don’t forget you have an article, 'Advantages of Canadian Tooling Show Off Well in Global Market' which you can access from your website, www.mtdmfederation.ca, in the November issue.

End to Mandatory Retirement and Its Effect on Pensions

In the March/April issue of Precisely Canadian, there was an article on the end to mandatory retirement in Ontario. A question was subsequently asked: ‘How will working past 65 affect individual contributions to Canadian pension and company pensions?’

Precisely Canadian asked spokesperson, Belinda Sutton, at the Ontario Ministry of Labour. Here’s the answer.

The Canada Pension Plan (CPP) is a federal program. Changes made to Ontario’s legislation to end mandatory retirement will not affect entitlement under the CPP. No change to CPP was made when other Canadian jurisdictions ended mandatory retirement

Employment pension plans for those working in Ontario (in both the public and private sector) are subject to the Pension Benefits Act (PBA). The PBA provides minimum standards for pension attributes such as administration, disclosure, membership, retirement and vesting (including the normal retirement age), benefits, contributions and investments.

No changes to the PBA are required to bring an end to mandatory retirement. The PBA already permits members to continue plan membership and benefit accrual past the ‘normal retirement date’ under a pension plan, which is most often age 65, subject to any contributions or service caps in the plan itself.

While the PBA requires pension plans to set a normal retirement date, which cannot be later than one year after turning 65, it does not require that the member retire at age 65 or any other age. The normal retirement date is simply the age at which a member becomes legally entitled to receive an actuarially unreduced pension.

  • Questions relating to the operation of the CPP should be directed to Human Resources and Skills Development Canada at 25 St. Clair Avenue East, Toronto, Ontario, M4T 3A4. Phone number 416/973-6915.

D-M-E Opens New Distribution Center/ Same Day Delivery for Windsor

D-M-E Company has opened a new distribution center in Windsor and expanded its same-day, no charge delivery service for Windsor-area mould makers. Class A commodity mould components are being stocked at the new D-M-E of Canada Distribution Center, 5260 Burke St., Windsor. The D-M-E delivery service is now provided once in the morning and once in the afternoon to Windsor area accounts. Product pick-up is also available at the D-M-E Windsor facility from 8:00 AM to 4:30 P

  • Products being stocked include: Imperial and metric ejectors pins and sleeves, Imperial core pins, tapered interlocks, side interlocks, leader pins and bushings, locating rings, sprue bushings, springs, insulator sheets, and cooling items including brass pressure plugs, and Jiffy sockets, plugs and connectors. A complete listing of stocked items will be available at D-M-E's web site, www.dme.net.

"Custom products will continue to be supplied through regular D-M-E channels, where we've also made great progress in reducing lead and delivery times,” says Al Morrow, the company's Canadian regional manager.

  • Orders for the Windsor location can be placed through D-M-E of Canada's Mississauga location by phone 800/387-6600; fax 800/461-9965; e-mail dme_canada@dme.net.

Diverse Meetings Show Federation Members Well Served

MAY EVENTS

  • May 29: CTMA Carbide/HSS Survey Group AGM, Kitchener

JUNE EVENTS

  • June 4: CAMM's 20th Golf Day, Windsor
  • June 6: CTMA's 8th Annual Shotgun Golf Tournament, Dorchester
  • June 11-13: ISTMA-World Board Meeting, Portugal (www.ctma.com/news/documents/ISTMA_Mtg_Portugal_June11-13_06.pdf)
  • June 12: CAMM Board of Directors Meeting, Windsor
  • June 12: Windsor Chapter Tour & Dinner Meeting, Windsor
  • June 15-17: International Patternmakers Congress, Paris, France
  • June 21: CTMA Board of Directors Meeting, Cambridge

JULY EVENTS

  • July 7: Apprenticeship Competition Entry Deadline (National)
  • July 13: Canadian MTDM Federation Board Meeting, Toronto (hosted by CPIA)(

AUGUST EVENTS

  • Aug. 23: CTMA Board of Directors Meeting, Cambridge
  • Aug. 31: CPIA Golf Tournament, Cardinal Golf Club, Markham

SEPTEMBER EVENTS

  • Sept. 12: CPIA Quebec's golf tournament, La Madeleine Golf Club, Quebec
  • Sept. 13: Safety Group Meeting (Windsor Chapter), Windsor
  • Sept. 15-17: CMTDMF AGM and Conference, Renaissance Fallsview Hotel, Niagara Falls
  • Sept. 22: Safety Group Meeting (Toronto Chapter), Milton
  • Sept. 25: CAMM Board of Directors Meeting, Windsor
  • Sept. 25: Windsor Chapter Tour and Dinner Meeting, Windsor

OCTOBER EVENTS

  • Oct. (TBA): Canadian MTDM Federation Board/Govt Meeting
  • Oct. 17: Safety Group Sponsor Meeting, Toronto
  • Oct. 25: CTMA Board of Directors Meeting, Cambridge
  • Oct. 27: CPIA Mould Makers Council and CTMA Toronto Chapter Dinner Meeting, Tour of Engel

NOVEMBER EVENTS

  • Nov. 9: CAMM's 5th Mould Makers Trade Fair, Windsor
  • Nov. 10: Safety Group Meeting (Toronto Chapter), Milton
  • Nov. 15: Safety Group Meeting (Windsor Chapter), Windsor
  • Nov. 20: CAMM Board of Directors Meeting, Windsor
  • Nov. 20: Windsor Chapter Tour and Dinner Meeting, Windsor

(Check a bit before the event with your respective Federation association to confirm dates.)

Advances in CAM Offer Vital Minutes for Savings and More

Competitive threats, particularly from countries with lower labor rates, has forced a number of mold makers out of business and others to take a fresh look at their manufacturing processes. The requirement to seek out opportunities to reduce costs and delivery times, while retaining the level of service and quality historically provided, has become a matter of survival.

Advances in tooling, machine tools and workholding have helped. So has adopting a culture previously more common to a high production machining environment. Shaving minutes or even seconds from an operation is becoming the norm.

  • The leading CAM companies continue to invest in making software easy to use. This doesn’t just mean a pretty Windows® compliant user interface. CAM is a complicated process with a multitude of different strategies and options available for every operation. Any CAM software selected should make it easy to generate robust, reliable toolpaths first time by reducing unnecessary clutter and guide a user through the machining process, while giving a high degree of control over the toolpaths generated.

However, in the area of programming, many shops still overlook two key areas for significant productivity gains. These are data translation and the automatic machining of mould plates.

For years, the standard for data translation was IGES, but many shops can now pass solid CAD data from engineering to manufacturing. Native files from CATIA®, or industry standard modeling kernels such as ACIS® or Parasolid®, contain a lot of useful information that can radically reduce programming time.

For example, a solid model of a plate will contain not just the hole centers, but also their diameter, depth and any chamfer or countersink information. Solid-based CAM software can quickly use this information to create toolpaths. For those shops that can’t pass solid CAD data, there are CAM solutions that can create a solid from surfaced IGES files.

An extension to this is ‘Knowledge-Based Machining,’ (KBM), where the CAM system learns how the programmer prefers to machine a component or particular feature.

KBM can apply the best machining practices consistently, drastically reducing programming times, and eliminating errors. The latest innovations in KBM use graphical flowcharts to define the required machining strategies and utilize non-geometric information (such as thread data) directly from the CAD model.

With faster programming of mould plates, some shops now use tombstones, upon which four or more plates can be mounted for machining. A single toolpath utilizing multiple tools can be generated to include all spot drilling, drilling and tapping operations. Pockets or ‘D-locks’ can also be machined directly from the model. The toolpath can be optimized to machine all the plates by tool, tool priority or particular face of the tombstone.

To summarize: CAM for mould and die is not just about machining the core and cavity. Automating the machining of mold plates offers more potential for significant productivity gains than perhaps any other aspect of programming in helping North American mold makers compete on a global basis.

  • Information for this article was provided by David Boucher, marketing director, Pathtrace Limited, a subsidiary of Planit Holdings plc, the developer of EdgeCAM. For information about Pathtrace and EdgeCAM, check out www.edgecam.com.

Plastimagen Substantiates Renewed Vigor in Mexican Industry

Plastimagen in Mexico City is described as the hub of the plastics industry in Latin America. Its strategic location provides ready access to the markets of Central and South America. The event has experienced a 6% growth in attendance from its targeted geographical markets over the period spanning the 2002 and 2004 shows.

According to the events organizers, the Mexican economy has doubled over the past 10 years, making it the largest economy in Latin America. This growth is due in part to the trade agreements Mexico has entered into during this period. In addition to the North American Free Trade Agreement, Mexico has signed agreements with the European Union, several Asian countries and many of its Latin American neighbors

  • Over the past several years, the Mexican plastics industry appeared to be loosing ground to Asian competitors. That scenario appears to be changing. According to industry people at the show there is somewhat of a reversal of that loss and there is a feeling of optimism for the future.    

This bi-annual event is one of the global plastics industry’s most important trade shows. It regularly attracts between 24,000 and 28,000 visitors. There were seven international pavilions: Austria, Brazil, Canada, Italy, Korea, Spain and Taiwan. There were also two industry pavilions for processors and roto-moulding. The event had 718 companies exhibiting from most of the major plastics industry markets.

The Canadian pavilion was well located near one of the two main entrances. The good location and the two large towers at either side of the pavilion featuring Canadian flags and logos made the CPIA/Canada pavilion hard to miss. The pavilion had five participating exhibitors and five literature participants. The exhibitors were: Berg Chilling/Mould-Tek, Corma, Heins PCM, Compact Mould, Mold-Spec and Industry Canada/CPIA.

Collectively, exhibitors reported more than 160 good leads now in development. One company reported a sale at the show and another is in the process of establishing a joint venture with a company met at the event. Two of the participants have indicated they are involved in some technology enhancements as a result of companies they met at the show.

Literature participants were Compound Mould Solutions, Humber College, Recyc RPM, Stack-Tek and System Moulds.

Without exception all exhibitors felt their participation had been worthwhile and sufficient contacts had been made to more than justify their time and expense.

  • This report on Plastimagen was prepared by Tom Sockett of CPIA. He has produced as well another excellent show profile, on Plast 06 Milano where CPIA and its government partners had an information booth for the second time. Plast is Europe’s second largest and second most important plastics industry trade show after the K, in Dusseldorf. For a copy, contact Mr. Sockett at tsockett@cpia.ca.

Schedule Much Time to Scrutinize Milacron's NPE Booth

Milacron's 24,748 sq ft booth will have market-specific solutions for virtually every segment of plastics processing. In addition to exhibits of machinery and tooling, Milacron will place special emphasis on aftermarket capabilities with a dedicated exhibit called the Aftermarket Center that will showcase equipment services, packages and components offered by Milacron. Many of the company's machine controls, including the new Mosaic control, will also be available for ‘test drives’ in the Milacron Technology Center, as well as on machines running at the show.

Uniloy Milacron plans to introduce breakthrough technology for reciprocating blow moulding machines aimed at extended shelf-life dairy packaging With a strong emphasis on package development and manufacturing, Uniloy will have exhibits highlighting its mould design and manufacture, prototyping and pre-production capabilities.

D-M-E will showcase several new products in the areas of hot runner systems and mould components, as well as provide attendees with an opportunity to market their businesses through a new industry resource that will be available at www.dme.net.

D‑M‑E’s applications experts will be on site to assist with any questions and offer solutions. The D-M-E display will be a significant part of the Milacron exhibit, continuing the focus on solutions for global customers.

The Milacron Technology Center will feature hard engineering displays that link the design of processing equipment to the science of producing a given part. Among the displays will be large and small machinery cutaways and models for hands‑on review by visitors. The displays will provide processors the elements of design differentiation in equipment selection and specification. The link of the design of machinery to actual parts will be demonstrated.

New EDC Program Manages Credit Downgrades in Auto Sector

Suppliers are looking for ways to mitigate their exposure to struggling OEMs under long-term supply contracts. At the same time, credit insurers have been pulling back or limiting their coverage on the OEMs, leaving few alternatives for exporters.

As a result of the difficult situation their industry is facing, suppliers needed a new source of protection against a buyer's bankruptcy filing, because losing up to 60 days of receivables could seriously impair cash flow and eliminate profitability for the entire year. Since capital markets are volatile and credits insurance markets have limited capacity, Export Development Canada (EDC) has developed the Insolvency Excess Loss Insurance policy to provide exporters with the necessary risk management tools.

Here’s How the New Policy Works

Exporters in this sector can purchase a six or twelve month insurance policy covering their shipments to the OEM in the 60 day period prior to the commencement of bankruptcy or insolvency proceedings against the OEM. Such proceedings must commence during the policy coverage period.

Under the policy, exporters must assume a reasonable first-loss position, equivalent in dollar terms to 10 days of shipments to the OEM. Exporters can choose to purchase excess loss protection from EDC in an amount equivalent to up to 80 days of shipments to the OEM, thus reflecting a potential overstocking by the OEM.

“The Excess Loss Policy is structured to complement an existing Account Receivables Insurance coverage from EDC or from another insurer, or can be used on its own,” says Daniel Primeau, EDC's chief underwriter, contract insurance and bonding.

Guaranteed Protection: Once the policy is issued, it cannot be cancelled by EDC because of deterioration of the OEM's credit rating.

How are Shipments Measured?: EDC calculates exporters' expected average daily shipments. If an OEM becomes insolvent, the exporter will assume a loss for an amount equivalent to 10 times their average daily shipment to that OEM.

EDC's policy will then kick in and cover them for an amount equivalent to up to 80 times their average daily shipment, depending on how much coverage was purchased.

Who can purchase this insurance?: At this time, the coverage is available only for GM suppliers. Any Canadian-based auto parts supplier to GM with long-term supply contracts that require the supplier to ship, even if the OEM's credit rating deteriorates during the term of the contract, can apply for this new policy.

  • For more information, call 1-800/332-9398; or check www.edc.ca/auto.

FITT Program Gives You International Marketing Expertise

The Forum for International Trade Training (FITT) has launched a series of programs and other initiatives designed to provide small and medium-sized companies with the competitive advantage of understanding the global trade environment.

FITT works with over 55 educational partners across Canada and offers on-line courses to give Canadians skills and knowledge to compete successfully in world markets.

FITT also recognizes the international trade practitioners’ need to demonstrate their abilities through professional certification. According to FITT, it is the only organization in Canada to award the Certified International Trade Professional (CITP) designation, the Canadian credential of excellence in international trade.

Its ‘Going Global Workshop’ Series is a joint initiative of FITT and Team Canada Inc. The six three-hour workshops, also offered on-line, introduce participants to the world of international business including: marketing, market research, trade finance, and international logistics and distribution.

European Initiative Will Strengthen Status of Players

The European tooling industry, although still holding its own in sales, is rapidly losing ground in the manufacturing sector to low production cost countries. Its tool making industries are concerned about their competitiveness in terms of added value per employee per hour.

Special tooling, together with precision machining and micro tooling, is an equally important component in the European plastic and metal processing value chain. Likewise, its industries, such as automotive, packaging, aeronautics, biotechnology, medical, have exacting requirements in terms of cost (a need for a 30% reduction), time to market (40% reduction) and product quality. In conjunction with ISTMA Europe, EuroTooling 21 has been created.

The goal of EuroTooling 21 is to generate a distinct advantage in knowledge, production technology and supply chain collaboration. As such, it will assist the industry to shift from being resource-based towards a more knowledge-based sector.

Just over 30 partners from ten EU member states, with complementary knowledge and expertise, have joined forces to achieve this goal. As the tooling industry is typically SME-dominated, the objective is to support the evolution towards high-tech SMEs, and to reinforce and integrate competitiveness, innovation and sustainability.

Furthermore, the initiative has as a goal the enhancement of research and development in terms of its capabilities and development.

AIAG Supports China Automotive Supply Chain with Shanghai Office

The Automotive Industry Action Group (AIAG), a not-for-profit automotive trade association, is strengthening its first Asian initiative to support the supply chain in China with the opening of a representative office in Shanghai and the appointment of Dr. Yilong Chen to lead the initiative. He is AIAG's general director of Asia-Pacific affairs and chief representative in China.

AIAG members, including DaimlerChrysler AG, Ford Motor Co., General Motors Corp. and major automotive suppliers, are increasing their presence in China rapidly. At the same time, Chinese automotive OEMs and suppliers are eager to improve their quality and export capability.

  • AIAG says by establishing an AIAG representative office in China, the Detroit-based organization is supporting its members' needs in China, and bridging the gap in the Chinese supply chain via common standards and tools to improve quality, and increase efficiency and competitiveness.

“To sustain the forecasted growth of the automotive market in China, it is imperative that we deploy best practices and standards throughout the Chinese portion of the supply chain,” says J. Scot Sharland, AIAG executive director.

“AIAG is prepared to work with Chinese suppliers and accelerate the development of world-class business processes to meet the emerging needs of the global automotive industry in areas such as systems interoperability, quality and warranty.”

  • AIAG’s 1,500-plus member OEMs and suppliers companies come from North America, Europe and Asia-Pacific. Its website is quite resource rich and worth visiting at www.aiag.org.
  • (AIAG has come up with a common global language specification for metrology system interfaces. Developed by its Metrology Interoperability Project Team, dimensional mark-up language (DML) will allow the direct exchange of inspection results between multiple coordinate measuring machines (CMMs). For more information on DML or the initiatives of the Metrology Interoperability Project Team, contact Akram Yunas at ayunas@aiag.org.)

Impressive Technology Advances Seen at Composites Show

Paris, France was the setting for the Journal Europeanne de Composites (The JEC) in late March at the Porte de Versailles show grounds in the southern part of Paris. This is an annual show and the second time that CPIA organized a Canadian pavilion.

According to CPIA’s director of international trade and shows, Sally Damstra, very significant sales were closed during the show and exhibitors at the Canada/CPIA pavilion felt that it was a very useful tool in their export endeavours.

Technological advances on display at The JEC were impressive. Visitors were able to learn more about basalt fibres whose mechanical properties are similar to S-glass reinforced, but having a 20% lower cost. Basalt fibres can also have a higher corrosion resistance than E-glass and are currently being used in infrastructure and fire barrier fabrics. Supply sources are out of Russia, the Ukraine and Belgium.

Several companies displayed collapsible composite mandrels for full barrel fuselages which indicates an expanded application for primary structures in the small business jet market.

The display of thermoplastics was diverse ranging from thermo-formable core materials, sporting goods and aerospace components to automotive and truck trailer components. Thermoplastics seemed to be more prominent at this conference than at recent USA and Canadian trade shows, indicating perhaps European companies are making greater use of these types of materials.

Microwave autoclaving was another advance shown off. Test results on the technology should be out in about a year, with commercialization anticipated three years thereafter, depending on market demand. The microwave autoclave is claimed to provide more uniform heating and faster curing of laminates using substantially less power. Because of the extensive certification required for applications in the aerospace industry, the technology will likely be used first in other sectors.

New tooling technologies offered at The JEC included a ceramic-based prepreg system, (Pyrotool, Pyromeral Systems, France), for tooling that can be used for composite processing up to 400°C. The Hexcel organization also announced a new chopped fibre-reinforced BMI tooling system that can be built up with plies up to 0.30 in. thick. The result is an estimated 50% reduction in labour costs for tool fabrication. The tool can be machined and modified to accommodate engineering changes.

  • Full details on the JEC can be read on the CPIA website, www.cpia.ca. Technology information out of the show was provided by Mike Hudek of the Composites Innovation Centre, Winnipeg. Phone 204/262-3400, ext 203. His email is: mhudek@compositesinnovation.ca.

Industry Events for the Tool and Mould Maker

(K Show, Oct. 24-31, 2007, in Duesseldorf, Germany: CPIA will once again operate and manage a CPIA/Canadian pavilion at the show. For details on how you can have a presence at the pavilion, contact Ms Sally Damstra at sdamstra@cpia.ca.)

Precisely Canadian Checks in on Status of Thixomoulding

Thixomoulding isn’t exactly a new technology but it seemed that it might be time for a bit of an update so Precisely Canadian asked for just that.

Currently there are about 280 Thixomolding® machines in operation in 12 countries on three continents. The primary use of the process remains focused on the “3 C market:” cameras, computers and cell phones along with other electronic applications.

According to Herb Pritzker of Thixomat, Inc. this is the result of the ability of the process to produce thinwall parts that are stronger, lighter and lower in cost than possible with engineered plastics when considered on a volumetric basis.

Additional growth for thixomolding is expected to come from the automotive industry. This is driven by CAFE requirements to reduce vehicle weight and improve fuel efficiency.

“The auto industry is now discovering applications where the conversion from one metal to the other is possible while maintaining the integrity of the part and we are seeing more components being converted,” says Pritzker.

“Our process is superior to die casting in that, among other advantages, we can provide parts with better dimensional stability, tighter tolerances and far less porosity (less than 50%) of the porosity of a die cast part.”

Faster Response to Customers’ Needs Leads to Success

After their employer was purchased in 1996 and reorganized, three highly experienced manufacturers found themselves having to make a major change in their lives because of a limited employment market in extrusion tooling. Charlie Brewer, David Harshbarger and Marty Rice each received job offers that would have unfortunately required moving. Unwilling to uproot their families, the men decided to apply their collective knowledge and experience to a new venture. The result is Frontier Tool & Design in Huntington, West Virginia.

Read how they managed their extensive experience to create a new business.

Engel Displays Cutting-Edge Technology at NPE

Engel plans to unveil some of its newest, most innovative machine technologies at NPE 2006. In its 14,000 sq ft booth, the company will showcase eight fully automated cells. All of the equipment will be industry-specific with an emphasis on the automotive, packaging, medical and teletronics sectors. A fifth sector, technical moulding, will feature five additional machines and robotics in partnership displays.

With the continued growth of the packaging market and thin-wall moulding, Engel is introducing a new line of fast cycling machines: ENGEL SPEED.

For moulders in the medical and teletronics industry, where precision is not a requirement but an expectation, Engel will feature two all-electric E-Motion machines. The secondary injection unit (LSR) is mounted in a piggyback configuration over the main unit, saving both floor space and allowing for standard automation possibilities.

The third all-electric cell will introduce moulders to the reality of defect-free moulding.

In conjunction with RJG Inc., Engel says it will be the first machine manufacturer to incorporate and support decoupled moulding technology directly into the machine controller (the new CC200 control).

The new ENGEL CC200 machine control will also be showcased in a Technology/Training Center. Training staff will demonstrate features and benefits of this state-of-the-art control. Highlights include the ‘e-trainer’ and ‘virtual moulding machine’ that will enable moulders to interactively learn, while also being able to perform mould set-ups off-line.

Visit Progressive Components’ NPE Booth for Upbeat Experience

Progressive Components is using NPE to showcase yet more new products from its recently launched FrictionFree™ line, along with the already publicized SRT slide retainer and needle bearing (NB) lock. The line is specially designed for cleanroom or close tolerance moulding, where the reduction or elimination of traditional lubrication agents is desired.

Other new product introductions will be displayed at NPE, including new blow mould tooling components, and newly updated mould maintenance software.

For those who cannot attend NPE, Progressive’s website will again feature a virtual booth available for viewing at www.procomps.com/npe during the week of the show.

Don’t forget: It will be VIP Happy Hour at 5 p.m. Monday through Thursday, right in Progressive’s booth. Snacks, refreshments and a Chicago blues band will be on hand to entertain you.

For those who cannot attend NPE, Progressive’s website will again feature a virtual booth available for viewing at www.procomps.com/npe during the week of the show.

  • Progressive Components offers distribution from seven locations on three continents. Complete product details and CAD geometry are provided on-line at www.procomps.com.

More News Bits and Pieces For CMTDMF’s Readers

Charmian Entine of CPIA has been identified for a long time as director of the association’s Mould Makers Council and has now handed over its responsibilities to Sally Damstra of CPIA. Until her full retirement in November after 25 years with the association, Ms Entine will be involved a few days a week with membership sales. Ms Damstra manages the Machinery Council and is director of International Trade and Shows as well.

  • The CPIA website carries the Canadian Plastics Pioneers newsletter. The April issue was an enjoyable read and mentions the CPP History Project is progressing now.
  • St. Clair College in Windsor offers a Mechanical Technician Co-op Diploma Apprenticeship Program. Check to see if seats are still available for the program. The contact is Thelma Serviss at the college, 519/972-2727, ext. 4446, email: tserviss@stclaircollege.ca.
  • Canadian tooling companies are getting major exposure in the East via an article provided by the industry for a Japanese publishing company. The company wanted to introduce the Canadian MTDM sector to promote investment from Japan into Canada.
  • At press time, your CMTDMF was completing the processing of a survey on the industry. The survey asked questions relating to financials, competition, customer demands, taxes, costs, and infrastructure. As noted in the survey, the results will be distributed only to those companies that completed the survey.
  • The Deloitte & Touche organization recently made a presentation to CTMA on various government programs, including the Ontario government’s Apprenticeship Training Tax Credit. A question came up earlier on whether or not it was a taxable program. The answer is “yes,” The ATTC is government assistance and has to be included in income. In essence then, depending on the taxpayer's tax bracket, a maximum claim of $5,000 per apprentice, could be worth between $2,000 and $3,500 after tax.
  • Windsor’s tool and mould making community certainly is being recognized by suppliers. Now, Cimatron North America has opened an office in the city, at 3357 Walker Rd., Unit 6. The company has also announced a new 5-axis NC package. (If you missed its February webinar, automating EDM Die sinker programming, you will still be able to tune in from its site www.cimatrontech.com.

Moving into China Markets Requires Very Thorough Strategy

BY MARGARET CORNISH,
Executive Director, Canada China Business Council

To meet the challenges of China, Canadian firms must develop a clear and realistic understanding of two things: first, where their firm sits on the global supply chain in their sector and, second, the capabilities and strategies of leading Chinese competitors and their impact on global competition.

Smaller firms who prefer to remain domestic need to understand how Chinese competition is transforming the global business and then adapt to keep abreast of ongoing changes on the part of both Chinese and global competitors. A variant of this strategy would be to link up with a Chinese firm interested in marketing its products in North America and use your marketing, sales and service network to support its product.

  • For small and medium-sized firms, meticulous advance preparation and a sharp focus on developing the correct strategy is critical to avoiding costly early errors that lead to unnecessary failure.

Here are a few of the pitfalls that good preparation will enable you to avoid:

  • Insufficient or sloppy market research leads to wrong choice of product or service.
  • Failure to understand the different competitive dimensions of the Chinese market leads to inadequate support and insufficient investment.
  • Hastily arranged partnerships are perhaps the greatest source of failure for foreign firms. In recent years many large firms opt for wholly-owned operations. Smaller firms often seek partners. But you must have a clear understanding of market forces in China; what you bring to the table and what you need from a partner.
  • Over-reliance on a local agent or employee leads to all manner of problems – from loss of corporate control, to collapse of business if the employee leaves for a competitor. It is essential to establish a pipeline of employees in training for each job so that you survive the turnover that is common in China.

Understand China Market Realities

China is growing so rapidly that many judgments formed only a few years ago may be out-of-date. The first step in developing a successful strategy is to undertake detailed analysis of the current market and confront misperceptions. There is a vast amount of web-based material on China including many highly regarded international sources. You must find ways to access Chinese sources as well.

  • In evaluating information, be sure you realistically assess the technological advancement market sophistication of your own firm relative to Chinese firms. Be sure to take the time during your first few China trips to visit trade fairs and as many plants as you can to really understand the range of Chinese capabilities.

Before proceeding to implement any China strategy – be sure your board and top functional managers are on side. Fostering any kind of start-up in China may require frequent trans-Pacific travel by key people in your firm – from HR, to operations to sales.

You must learn the policy priorities of the various levels of Chinese government regarding your business. These priorities will influence the content and duration of incentives and benefits for foreign firms.

Don't Leave It to Your Partner

It is important to understand your partner's competitive strengths and weaknesses in the local industry and how your firm fits into this equation. The key to protecting your long-term interest in a JV is to ensure that you continue to add value to the business in China. No matter how comfortable the relationship, it is a mistake to rely excessively on your China partner. Chinese companies will focus intently on absorbing your expertise in international marketing, competition, sales or technology. It is up to you to stay ahead or cease to be relevant.

To retain your credibility as a partner, or as a major supplier if you are wholly owned, you must build on your firm's industry leadership in a manner relevant to China. It is your job to absorb as much as you can about the Chinese business as possible. If you do not demonstrate a solid and growing grasp of the direction and challenges of the China market to Chinese customers, suppliers etc, your value to the China partner will gradually diminish.

  • This is a shorter version of an article provide by the executive director of The Canada China Business Council, a private membership association that promotes bilateral trade and investment between Canada and China. For more information about the CCBC, visit www.ccbc.com.

Auto Growth Means Choosing Wisely Wherever Business Sought

The PwC Automotive Institute’s latest global auto outlook underscores the dilemma of the ‘guys at the top:’ where to place their manufacturing investments. The bitter truth according to the PwC is that not every growth strategy will necessarily succeed. And that produces critical planning implications for the global supply chains connected to each OEM. So here’s an encapsulation of the global market that auto manufacturers are, or will be, examining.

  • The Chinese market growth (+2.4 million units) equals the increases expected from the next three countries (USA, Slovakia and India) combined.
  • EU assembly growth will approach two million units by 2010, contributing 23% of the 8.6 million units of incremental assembly around the world.
  • Based on Fiat's resurgence, Italy is expected to grow by 28% through 2010, resulting in a top 10 contribution to global growth ranking by country.
  • North America is the only global region where light vehicle assembly is expected to decline in the near-term, before regaining upward momentum in 2007.
  • Four of the top 10 largest vehicle producing countries (2005) are expected to shrink over the forecast horizon including Japan, South Korea, Spain and Canada.
  • Global capacity increases by 9.2% over the window, but improvements in aggregate utilization (+3.2%) brings excess capacity down by 1.2 million units.                

As GM has shed equity stakes in Subaru, Suzuki and Isuzu, Asia-Pacific growth for the group centres on China and South Korea (GMDAT). Combined with an aggressive global push by Toyota (+2.3 million units) results in the latter taking over as the world's largest assembler of light vehicles this year.                 

In addition to Toyota, three other automaker groups including Renault-Nissan (+1.4m), Hyundai (+1.3m), and Volkswagen (+1.1m) add at least one million units of assembly over the next five years, underlining the distinct volume opportunities for global suppliers going forward.               

But, says the PwC, suppliers attached to OEMs who are focused on rationalization need to identify the pieces of business that remain profitable. Tier II suppliers also need to attach themselves to customers that will survive ‘preferred supplier’ consolidation efforts.                 

Finally, suppliers looking to make global investment decisions need to align their expansion strategies to those of both their current customers and future targets to achieve maximum ROI results.           

Maintenance Insights and Answers for Tool Makers

THE PROBLEM: DATA WHEELS

Question:

We are having trouble with date wheels not turning properly during the production run. We've tried loosening them; however they lock up again during the next run. A flat screw driver is all we use to try and turn them. Any ideas? Typically it is the ‘month’ date wheels we have to move.

Answer:

  1. One root cause could be that there is too much or too little clearance of the insert O.D. to the holder I.D. against the tolerance they were manufactured to. If that is not the case, it could be possible that there is too much press fit on the assembly.
  2. When you ‘free up’ the wheel, is there any plastic between the insert and the holder? Flash in this area would indicate too much clearance. 
  3. What resin are you moulding? In some cases, different types of resins have been known to cause these types of issues. 
  4. What is the mould temperature? Some moulds run really hot at 150 deg F, while some run at 45 deg F.  Both extremes can affect how much clearance there is while moulding.
  5. How many cavities does the problematic mould have? Is there one date wheel/stamp per cavity? If there is a 16-cavity mould and three of them are not turning, one can now begin to look for differentiation between those that work and those that do not, and know how many are failing in total.
  6. Are all the inserts in the mould sticking or is it certain cavities? Having only a couple out of, say, eight would lead us to believe that it might be a manufacturing problem.
  7. Are the inserts close to the gate? Also, are they on the ‘A’ or ‘B’ side? If they are close to the gate, heat is higher and may be affecting the movement.
  8. Make sure to check the sticking wheel in the press before pulling it out to inspect the problem. This is an odd issue, so it would be a great advantage to attempt to address the issue in the press rather than after it's been pulled.
  9. When a date wheel/stamp is not turning, and one is turning them back and forth to loosen them up with no resolve, then it's possible it is the tool. However, this is difficult to diagnose without actually viewing the application.  
  • Precisely Canadian thanks ToolingDocs for providing this solution to a basic problem that really is in fact somewhat complicated. Website: www.toolingdocs.com.

So How is the Canadian Auto Industry Faring in the World?

In early April I attended a seminar which addressed that topic. One of the guest speakers was Don Drummond, senior vice president and chief economist, TD Bank Financial Group. His presentation was supposed to be posted to TD’s website but I can’t find it so here’s a kind of summary, by headline. The “one liners,” should at least confirm your awareness of the industry globally and seem to confirm Dennis DesRosiers’ insights.

  • The U.S. exports few cars offshore
  • U.S. exports of auto parts are even less important
  • Canada exports almost two-thirds of (its) parts production
  • Most of Canada’s parts exports go to the U.S.
  • Many non-American companies meet their North American sales from N.A. production
  • Imports have cycled in importance in the N.A. market
  • Recent import growth has come from S.Korea and Germany
  • Japanese companies meet U.S. sales largely through N.A. production
  • Japanese companies meet Canadian sales largely through N.A. production
  • U.S. imports of parts are diversified
  • Japanese transplants are buying more parts from U.S. production
  • Canada imports almost exclusively from the U.S.
  • Canada’s share of N.A. production is steady
  • Toyota is operating beyond full capacity
  • Capital expenditures of Canadian auto industry at all-time high
  • Delphi developments could have ripple effects.

Letter to Attorney General for You to Use On Lien Law

  • The Honourable Michael Bryant
  • Attorney General, Province of Ontario
  • 11th Floor, 720 Bay Street
  • Toronto, ON M5G 2K1

Dear Mr. Bryant,

The United States Department of Labor statistics indicate that nearly one third of all U.S.-based tool and die shops have closed since 2000. Detroit-area media have reported manufacturing jobs in Michigan are now at the lowest level since they began keeping records.

Ontario-based tool and die shops are facing similar challenges in a rapidly changing global marketplace.

In an effort to assist the industry, Michigan has dedicated over $1.3 billion (U.S.) of support to the machine, tool, die and mould (MTDM) sector. The Government of Michigan has also designated eight tax-free ‘recovery’ zones for tool and die companies at various locations throughout the state. Companies in these zones receive tax–free status for up to fifteen years from state and local property taxes as well as state income taxes, local utility taxes and Michigan’s single business tax.

In addition to financial support, on March 2 and June 27, 2002, the Michigan Legislature passed two bills that provide new protection to mould builders and special tool builders. This legislation, (the Molder’s Lien Act and the Special Tools Lien Act), provides mould builders and tool builders the ability to obtain priority secured creditor status (lien) on moulds and tools on which they have not yet received payment. Their ability to secure the lien can be made even if they no longer have physical possession of the tool (e.g., already delivered to their customer).

This ability to register a security interest following delivery gives Michigan-based companies an effective means to mitigate financial risk and, a distinct competitive advantage over MTDM companies operating in Ontario.

Following Michigan’s initiative, the State of Ohio enacted similar legislation to protect companies operating within its MTDM sector.

  • Current legislation in Ontario requires the builder to have possession of the mould/tool in order to enforce a lien. Most builders do not maintain possession of the product, as the nature of our business requires it to be transferred to the end user prior to payment, leaving the builder at financial risk.

As you are aware, the Ontario MTDM sector is comprised of relatively small, owner-managed companies employing highly skilled, well paid workers. Notwithstanding their small size, participants in the MTDM sector provide Ontario with the type of infrastructure automotive OEMs consider as a prerequisite to major capital investment in our province.

Your Government has recognized the importance of the automotive industry to Ontario’s continued prosperity. I ask you Minister to consider implementing similar laws in Ontario to those now in effect in Michigan and Ohio. Given increasing economic and financial challenges, the MTDM sector in Ontario requires an improved legal mechanism to mitigate financial risk it confronts.  

If I can be of any assistance in implementing this protection for our Machine, Tool, Die, Mould manufacturers, please do not hesitate to contact me.

Sincerely,

Ed Bernard, Chairman, Canadian Machine, Tool, Die & Mould Federation

NPE Offers Many Free Seminars That Fit Your Needs

We’ve run out of space to talk about the NPE show. Having reported on several NPEs, there seems to have been an immense amount of information coming out about this year’s event. For example, I have a list of exhibitors, mould making, who said they will be introducing new technology. The list is not a substitute for attending NPE. It’s a roadmap to guide you through the show.

Okay, Husky wants to keep its advances quiet until show time. But it will say it is showcasing a wide range of technologies aimed at the specific needs of markets such as automotive, packaging, closures and PET.

Mold-Masters will be showing off its Melt-Disk which is designed to provide simple yet versatile horizontal hot tip processing for direct side gating.

Battenfeld is launching the new, extremely compact HM Series. In addition to the new HM 400/2250 Unilog B4, a small HM 25/130 will be shown off, plus a TM 100/525 from the successful toggle modular machine series, and the Microsystem 50, for the production of innovative micro components.

At the Wittmann booth you will see the W-723-CS3 Series servo robots for molding machines in production halls with low ceiling heights. This model is best suited for the mounting on moulding machines up to approximately 275 tons (2,500 kN) of clamping force.

Don’t forget to check out the MoldMaking Pavilion and of course the CPIA/Canada pavilion. There’s also the winners of the Alliance of Structural Plastics competition.

And there’s certainly any number of seminars to consider. Many of these are free so go through the website, www.npe.com. (In the last issue, we talked about MyNPE, which you can use to help your tour of the show, even at the show.)

I’ve been getting IMM’s NPE planner and checked out the flight costs. They are okay. As to the hotel costs, well, I seem to recall some companies will rotate the use of the room. All in all, NPE, from June 19th to the 23rd, is a huge show offering a multitude of opportunities.

Disclaimer: All information in this publication is accurate to the best of our knowledge.
© 2007, Canadian Machine, Tool, Die & Mould Federation, all rights reserved.